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FOR IMMEDIATE RELEASE

EthoStream Continues Its Accelerated Sales Growth via Expanded Product Offering

Expected to generate sales of approximately $5 million by 2007 year-end

September 10, 2007 - Germantown, MD - EthoStream, LLC, a Telkonet company (AMEX: TKO), operators of one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., and a preferred or endorsed provider for some of the world's largest hotel companies, today announced it continues to recognize accelerated sales growth through 2007, with year-end sales of approximately $5 million specific to EthoStream sales activities. EthoStream's strong sales success, along with Telkonet SmartEnergy's revenue projection of $5 million, illustrates the synergies of Telkonet's recent acquisitions.

EthoStream attributes their strong sales performance to three factors: the use of powerline communications (PLC) technology as a backbone, the offering of new energy management products that reduce energy consumption by approximately 30%, and providing a centralized, integrated platform that supports EthoStream's complete technology services offering. The combination of these products illustrates EthoStream's true technology convergence, providing hospitality owners with a comprehensive range of services.

Since the acquisition by Telkonet, a growing number of EthoStream's installations have implemented the Telkonet iWire System™ as a backbone, which provides a comprehensive hybrid solution of wired and/or wireless Internet access. Telkonet's system, which uses a building's internal electrical wiring for Internet access, not only eliminates the need to wire a building with costly CAT-5, but also leverages the ability to easily add products and services requiring network connectivity utilizing the PLC backbone, such as Voice over IP and surveillance. Hospitality properties are realizing they can maximize their investment by adding revenue-generating and cost-saving applications that run off of the Telkonet platform.

Jason Tienor, chief operating officer for Telkonet, EthoStream and Smart Systems International, elaborated, "Our expanded product offering integrates the best technologies of each of Telkonet's latest acquisitions. The ability to leverage Telkonet's PLC technology as an infrastructure platform and provide comprehensive remote management through EthoStream's Remote Management Console has allowed EthoStream to increase its presence in the full-service hospitality market and beyond simply high-speed Internet access."

About EthoStream
EthoStream, LLC is a technology solution provider targeting the hospitality and MDU/MTU verticals. Operating one of the largest hospitality high-speed Internet access (HSIA) networks in the U.S., EthoStream is a preferred or endorsed provider for some of the world's largest hotel franchisors. Now offering solutions including VOD, VoIP, digital video surveillance, Internet connectivity and HSIA packages, EthoStream has developed the most comprehensive technology management platform available for the hospitality industry.

EthoStream has distanced itself from other providers in the hospitality HSIA field through the size of its EthoStream Hospitality Network, high quality of technology and support provided to network members, security of the network and overall guest satisfaction. Beyond claims made by competitors, as the premier hospitality HSIA provider, EthoStream has continued to lead the industry through end-to-end service and its high quality standards. To learn more about EthoStream's products, services and EthoStream Hospitality Network, please visit www.ethostream.com.

About Telkonet
Telkonet specializes in advanced integrated solutions for broadband data networking and energy management, including its highly successful in-building powerline communications (PLC) technology. Headquartered in Germantown, Maryland, USA, Telkonet has over 175 employees and serves thousands of customers worldwide.

The company's unique broadband networking solutions currently support more than a million network users per month, with its energy management systems optimizing energy consumption in over 60,000 rooms. Telkonet's technology innovation is underpinned by the highest level of end-to-end quality of service, with comprehensive technical customer support. Its systems deliver wide-ranging functionality, from wired and wireless high-speed Internet access to energy management, IP surveillance and local area networking. Telkonet's platforms are widely deployed on the global stage - in single buildings and ships, in multi-building complexes, hospitality venues and multi-dwelling units, and at government, education and defense locations.

Telkonet's innovations include the revolutionary Telkonet iWire System™, which converts a site's existing internal electrical infrastructure into an IP network backbone - quickly, cost-effectively and without disruption. The portfolio also includes the integrated EthoStream product suite, providing a comprehensive and advanced technology management platform for the hospitality industry, differentiated by outstanding remote management tools and a dedicated customer support facility. Telkonet SmartEnergy completes the line-up, delivering typical bottom line savings of 30% by controlling in-room energy consumption according to occupancy. For more information, please visit www.telkonet.com.

Contacts:
Joe Noel - Telkonet
240.912.1851

Mitchell Simmons - Rubenstein Public Relations
212.843.8364
msimmons@rubensteinpr.com

Andrew Hellman - CEOcast
212.732.4300
adhellman@ceocast.com

EthoSTream corporate address

EthoStream, LLC

10200 Innovation Dr
Suite 300
Milwaukee, WI  53226
Toll Free:  877.536.2984
Milwaukee:  414.223.0473
Fax:  414.258.8307

Fabulous Service

"I wanted to send you a quick e-mail and let you know how extremely satisfied I have been with the service that Jason Tienor and his entire Team at Ethostream. Jason’s entire Team has responded to our request for service in Green Bay and quickly was able to get out to the job site to stay ahead of the sheet rockers. All too often we only tend to contact the Brand due to negative issue and felt that you should hear about this awesome service that they extended to us. I look forward to working with Jason and his entire Team on all our other projects in the future. Thank you for partnering with a company that is as service driven as we are!

Tim Waz - Director of Operations - HP Hotels, Inc "

Customer Testimonials

"In addition to stable hardware, the primary reason we use EthoStream for our hotels' wireless networks, is about service. Last week, Dominic, one of the EthoStream technicians spent a great deal of time with our bandwidth provider to solve a problem that was not even related to the EthoStream network. It's that kind of commitment to service that keeps EthoStream on top of our vendor list."

Bob Nietzel - Director of Food & Beverage - Holiday Inn Select Naperville